SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 18, 1996
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20th Century Industries
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(Exact name of registrant as specified in its charter)
CALIFORNIA
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(State or other jurisdiction of incorporation)
0-6964 95-1935264
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(Commission File Number) (IRS Employer Identification No.)
6301 Owensmouth Avenue, Suite 700, Woodland Hills, CA 91367
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(Address of principal executive offices)
Registrant's telephone number, including area code ( 818 ) 704 - 3700
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(Former name or address, if changed since last report) NONE
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Item 5 Other Events
On July 18th, 1996 the Registrant issued second quarter, 1996 financial
results and announced its intention to grow the Company's core business of
automobile insurance and resume its prominence as the low-cost provider of
quality insurance by implementing overall rate reductions.
On July 30th, 1996 the Registrant issued a News Release announcing that
20th Century Insurance Compnay of Arizona will begin marketing private
passenger automobile insurance to Arizona residents beginning August 1st.
20th Century Insurance Company of Arizona is a joint venture between American
International Group, Inc. and 20th Century Industries
SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Report to be signed on its behalf by
the undersigned thereunto duly authorized.
20TH CENTURY INDUSTRIES
Date: August 9, 1996 Margaret Chang
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Treasurer
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20TH CENTURY INDUSTRIES
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NEWS
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Lillian Cloud or Richele Craveiro
at 213/629-4974
Company contact: Rick Dinon
or Ric Hill at 818/704-3595
FOR IMMEDIATE RELEASE July 18, 1996
20TH CENTURY INDUSTRIES REPORTS
SECOND QUARTER 1996 RESULTS
(WOODLAND HILLS, CA) -- 20th Century Industries (NYSE: TW), the Woodland Hills-
based insurance holding company, today reported a net profit of $ 31.9 million,
or $ 0.46 per share (primary), on revenues of $ 245.2 million, for the three
months ending June 30, 1996. For the same period in 1995, the company had a net
profit of $ 14.6 million, or $ 0.18 per share, on revenues of $ 262.7 million.
20th Century has instituted several actions to grow the company's core business
of automobile insurance and resume its prominence as the low-cost provider of
quality insurance. The company implemented auto rating plans during the first
half of the year that produced an overall rate reduction of approximately 5.5
percent. According to company President and Chief Executive Officer William
Mellick, continuing moderate claim results have permitted the filing of an
additional request for an overall 5.9 percent decrease. If approved, the new
rates are expected to be implemented in the third quarter. Other actions
include an aggressive ad campaign and new automobile coverage offerings.
Both A.M. Best and Standard & Poor's have recognized 20th Century's sound
financial footing by upgrading the company's financial performance ratings.
A.M. Best upgraded 20th Century by two grade levels to B+ (Very Good). Standard
& Poor's upgraded the company by eight levels to triple-'B'-plus (BBB+). "We
are pleased that our success and return to profitability has been recognized,"
said Mellick. "And, we look forward to even better future ratings."
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20TH CENTURY INDUSTRIES
SECOND QUARTER 1996 FINANCIAL RESULTS
ADD ONE
"This report marks our fourth consecutive quarter of profitable underwriting.
We're looking forward to increasing our market share through our recent rate
reductions and anticipate further benefits for our customers and the company
when our most recent filing is approved." said Mellick. "The recent opening of
our full-service regional office in Northern California and our expanded
marketing campaign, including a newly-established site on the Internet, position
us well for the second half of the year."
Progress was also made this quarter in the establishment of 20th Century
Insurance Company of Arizona. The Arizona Department of Insurance issued a
certificate of authority on June 27, 1996, licensing the company to market and
service private passenger automobile insurance. Final approval on rates and
forms is expected soon. The company is owned 51 percent by American
International Group, Inc. and 49 percent by 20th Century Industries.
Other financial information in the second quarter included:
Automobiles insured were 1,012,475 at the end of the quarter. Total units
insured stood at 1,173,242, a decrease of 9.7% from the same period last
year.
Direct premiums written in the second quarter were $ 244.3 million compared
to $ 268.6 million in 1995. Net premiums written were $ 217.0 million
versus $ 232.5 million for the second quarter last year.
Net investment income was $ 18.8 million for the quarter, compared to $
20.6 million one year ago. Invested assets at the end of the quarter were
$ 1.1 billion and the average pre-tax yield was 6.7%.
Realized pre-tax investment gains for the quarter were $ 1.3 million
compared to $ 2 million for the corresponding period in 1995.
Stockholders' equity on a GAAP basis at the end of the quarter was $ 471.0
million compared to $ 400.4 million at the end of the second quarter in
1995.
The combined ratio for the automobile line was 86.6, compared to 92.3 in
1995's second quarter after adjustment for the effect of Proposition 103.
20th Century Industries is the seventh largest publicly-held personal automobile
insurer in the United States. Founded in 1958, the company is traded on the New
York Stock Exchange under the trading symbol TW. The company's wholly-owned
subsidiaries, 20th Century Insurance Company and 21st Century Casualty Company,
market personal automobile and personal excess liability insurance.
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20TH CENTURY INDUSTRIES
SECOND QUARTER 1996 FINANCIAL RESULTS
ADD TWO
Both insurance subsidiaries sell directly to consumers without agents. 20th
Century Industries is headquartered at 6301 Owensmouth Avenue, Woodland Hills,
CA 91367; 818-704-3514. 20th Century's address on the Internet is
http://www.20thcentins.com
6301 Owensmouth Avenue | Woodland Hills, California 91367
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20TH CENTURY INDUSTRIES
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NEWS
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Contact:
Lillian Cloud or Richele Craveiro
at 213/629-4974
Company contact:
Rick Dinon or Ric Hill
at 818/704-3595
FOR IMMEDIATE RELEASE July 30, 1996
20TH CENTURY INSURANCE COMPANY OF ARIZONA
OPENS FOR BUSINESS
High-quality, low-cost automobile insurance is now available to Arizona
residents
(PHOENIX, AZ) -- 20th Century Insurance Company of Arizona received regulatory
approval and will begin marketing and servicing full-coverage, private passenger
automobile insurance to Arizona residents on August 1, 1996, it was announced
today by the new company's Chairman of the Board Robert M. Sandler and President
and Chief Executive Officer William L. Mellick.
The new company will utilize the same operational philosophy that has made 20th
Century Industries one of the most successful companies in its industry --
provide direct sales to the consumer without agents, insure only responsible
drivers and maintain the lowest expense ratio possible -- to pass on cost
savings to its customers. This formula, combined with its efficient,
centralized processing operations, enables 20th Century Insurance Company of
Arizona to offer extremely attractive rates to Arizona's safest drivers.
20th Century Insurance Company of Arizona is a joint venture between American
International Group, Inc. (AIG) and 20th Century Industries, owned 51 percent by
AIG and 49 percent by 20th Century Industries.
Sandler is executive vice president, senior casualty actuary and senior claims
officer of AIG and vice chairman of 20th Century Industries' board of directors.
Mellick also is president and chief executive officer of 20th Century Industries
and a member of its board of directors.
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20TH CENTURY INSURANCE COMPANY OF ARIZONA
Add One
"We are extremely excited about offering Arizona residents the same high-quality
insurance products and unparalleled customer service that 20th Century has
provided in California for nearly 40 years," said Mellick. "Our direct sales
approach enables us to deliver the highest quality service available at the
lowest prices. Our experience in California during its time of greatest
development has given us broad expertise in meeting the needs of a fast-growing
market. We look forward to establishing a solid, long-lasting relationship with
our new neighbors in Arizona."
20th Century Insurance Company of Arizona will begin operations through a fully-
staffed claim and policy service facility in Phoenix to provide localized
service to the state's residents. For policy or claim service, only one toll-
free call to (800) 211-SAVE is needed to reach a claim specialist who will
arrange for local service anywhere in the state.
American International Group, Inc., is the leading U.S.-based international
insurance organization and among the nation's largest underwriters of commercial
and industrial coverages. Its member companies write property, casualty,
marine, life and financial services insurance in approximately 130 countries and
jurisdictions and are engaged in a range of financial services businesses.
AIG's common stock is listed on the New York Stock Exchange, as well as the
stock exchanges in London, Paris, Switzerland and Tokyo.
Los Angeles-based 20th Century Industries is the seventh largest publicly-held
personal automobile insurer in the United States and the fifth largest insurer
of private passenger automobiles in California, covering approximately one
million vehicles throughout the state. Founded in 1958 by Louis W. Foster, the
company sells insurance without agents directly to consumers exclusively in
California. 20th Century Industries is a publicly-held company traded on the
New York Stock Exchange under the trading symbol TW. Wholly-owned subsidiaries
are 20th Century Insurance Company, which markets automobile and excess
liability insurance and 21st Century Casualty Company, which markets automobile
insurance.
6301 Owensmouth Avenue | Woodland Hills, California 91367
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